DALLAS -- Movie rental chain Blockbuster said Monday it signed a $290 million deal to be brought out of bankruptcy by a group of investors.
The offer from Cobalt Video Holdco is a so-called "stalking horse" bid, which Blockbuster hopes will attract other bidders who will offer more.
The Cobalt group includes funds managed by Monarch Alternative Capital, Owl Creek Asset Management, Stonehill Capital Management and Värde Partners. They all hold secured Blockbuster debt, so they stand to benefit if someone else buys the company for more than the amount they paid for their Blockbuster debt.
The deal needs approval from the federal bankruptcy judge overseeing Blockbuster's reorganization. The company said other bidders would have 30 days after the process is approved by the judge to submit their own bids. That would prompt an auction, the company said.
Blockbuster said it aims to close a final sale by April 20.

Blockbuster is on the way out. Their stores are closing like crazy, I worked at the one by me back in highschool and the lines used to be out the door-I went in there the other night for the first time in years, and it was me, and one other person in there. They waited entirely too long to react to Netflix, and Redbox-much better deals.

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